21.The widespread use of the internet has allowed individuals to communicate at lower cost. It has also expanded services online. This has

a.caused an economy to operate inside its production possibilities curve.

b.caused an economy to move from one point on the production possibilities curve to another point on the curve.

c.shifted the production possibilities curve inward.

d.shifted the economy's production possibilities curve outward.

22.Scarcity persists, but poverty can be alleviated. True or False?

a.True. Our resources are limited, but poverty means that a social need has not been met.

b.False. Poverty is the same as scarcity.

23.If an economy experiences brain drain, then

a.it will not benefit from trade with other countries

b.its production possibilities will remain unchanged

c.its production possibilities curve will shift in

d.its production possibilities curve will shift outward

24.Three fundamental questions economies must address are:

a.what technologies will be employed, how do we preserve nationalism, when to go to war

b.what cost, profit, and resources will be used

c.what do prices signal, who will produce the goods, and who will consume the good

d.what will be produced, how goods will be produced, and for whom goods will be produced

25.If the individuals of Bali were to work harder and take less leisure time, it would

a.shift the production possibilities curve outward.

b.cause an economy to operate inside its production possibilities curve.

c.shift the production possibilities curve inward.

d.cause an economy to move from one point on the production possibilities curve to another point on the curve.

26.Individuals that produce services that reduce the cost of transactions, like negotiating and finding suppliers, are known as

a.elite merchants

b.free loaders

c.middle income earners

d.middlemen

27.The opportunity cost of an option

a.measures the undesirable aspects of the option.

b.is the highest-valued alternative that must be given up as the result of choosing the option.

c.includes only the monetary cost of the option.

d.is objective, and it will be the same for all individuals.

28.Given what you know about incentives created by private ownership, which of the following is most likely false? Select all that apply.

a.Individuals are likely to take care of their own personal automobile than they will a rental car

b.Property owned privately will tend to be better conserved and kept than public property or property owned in common.

c.Individuals are likely to take care of a home they own than they will a hotel room

d.Individuals are more likely to throw trash on their front lawn than they will be to throw it onto the side of a freeway

29.Private property rights involve... Select all that apply.

a.the right to exclusive use of the property.

b.legal protection against those who would seek to use or abuse the property without the owner's permission.

c.the right to transfer, sell, or exchange the property.

6.Consumer surplus is

a.an expired, unsold good that is over a year old.

b.the loss in an exchange.

c.the difference between the minimum price a seller is willing to accept and the price received.

d.the difference between the maximum price a consumer is willing to pay and the price paid.

7.Which of the following is not a result of increases to the minimum wage?

a.increases in employer-based health insurance and retirement.

b.increases in "black market" or under-the-table wages.

c.reductions in full-time employment of low-skilled labor.

d.increases in technological substitutes for low-skilled labor, like self-checkout machines.

8.Price ceilings that are set below the equilibrium market price often results in

a.higher quality goods and services.

b.an increase in black market activity, as sellers may take bribes or discriminate.

c.an increase in investment in that market.

d.an efficient use of resources.